Series 7 question of the day
2026-10-31. A new question every day.
Current yield and annual interest
A corporate bond has a 4.5% coupon and a $1,000 par value. How much interest does it pay each year?
- $45
- $4.50
- $22.50
- $450
Show the answer
A. $45
- Annual interest = coupon rate × par.
- 0.045 × $1,000 = $45 a year, usually paid as $22.50 every six months.
Learn it: Current yield and annual interest
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